Lean manufacturing, as a management philosophy, focuses on waste reduction. By elimination of waste occurring through process time, waiting time, inventory, transportation, over production, motion and scrap, there is a significant improvement in quality and a reduction in production time and costs.
The five laws of Six Sigma are derived from a combination of the principles of Six Sigma and Lean Manufacturing which complement each other magnificently to construct paths for progress as defined by these Five laws.
The prime concern of the five laws is to upgrade the quality and business processes of a company with the ultimate aim of improving customer relations and return on investment. The five laws have developed over a period of time and comprise of ideas and principals which form the basis of both Six Sigma and Lean Manufacturing.
The First Law Or Law 0: This is known as the Zeroth Law, as it is fundamental to the building of all other principles. The 0 law is: The Law of the Market- Customer Critical to quality. This principle defines quality and accords it the highest priority level for improvement among all other parameters. ROI (Return on Investment) and Net Present value are next in line in the order of priority.
The Second Law: The second law is known as the Law of Flexibility and states: The velocity of any process is proportional to the flexibility of the process. The implication and meaning is that greater the flexibility and receptiveness of the process to adopt changes, higher the progress rate of project implementation.
The Third Law: The third law is called The Law of Focus and states: twenty percent of the activities in a process cause eighty percent of the delay. On expansion this can be understood to mean that the bulk of the delay in any process, finds roots in a just about twenty percent of the total activities. The related problems can be dealt with speedily and effectively as the identification of the "culprit" twenty percent activities, considerably minimizes the area of refocus in the phase of reorientation.
The Fourth Law: The fourth law is referred to as the law of velocity. It is states as: The velocity of any process is inversely proportional to the amount of WIP (Work in Progress). It is also known as Little's Law, named after the mathematician who proved the theory. The formula states that Lead Time equals Work in Progress divided by Average Completion Rate. It indicates how the velocity of project implementation gets retarded on account of the inertia of the Work in Progress. A greater number of unfinished tasks or WORK IN PROGRESS would result in a proportional lowering of the speed of progress on account of various handicaps at the ground level.
The Fifth Law: The Fifth and last Law of Lean Six Sigma states: The complexity of the service or product offering adds more non-value, costs and WIP that either poor quality (low Sigma) or slow speed (un-Lean) process problems. Lean manufacturing principles do not favor production in bulk. The last law asserts that the complex manufacturing process and service and product specification plus the bulk contribute to the redundancy of the offerings.
The five laws of Lean Six Sigma are a composite of principles of Six Sigma and Lean Manufacturing. They lay down the foundation of effective improvement in the processes of a company by eliminating defects and reducing waste leading to improved product quality and a reduction in production time and costs. Better customer relations and ROI are the ultimate objectives.
1. Above all else, do your research. Buying a foreclosure can get you some great deals, but not all foreclosure properties guarantee savings. You have to be willing to search out the properties with the best chance for potential savings by fully examining them. Be sure to call auction or sales trustees and get all the information you can about the home before you make any decisions. Often times there may be certain things wrong with the home that a listing will not show.
2. Before you decide to pursue a foreclosure you see listed, make sure it's being sold through a method that suits your needs and abilities. There are a lot of different kinds of foreclosures out there, from bank owned homes to pre-foreclosure properties, and choosing the right method of purchase is often just as important as choosing the right property. Some methods offer advantages that others don't, and depending on your personal situation, others may present disadvantages. For example, pre-foreclosure homes, though they offer great deals, usually require more work. There is often a lot of cat-and-mouse phone calling involved, a great deal of bargaining, and also plenty of face-to-face meeting time to work out and close deals. If this sort of commitment is impossible for you, you'd probably be wise to consider a different type of foreclosure. You want to make sure you maximize your chances of getting the best deal possible, and putting in only half the effort required, whether you're buying pre-foreclosures of government homes, won't get you the kind of savings you want.
3. Perform a title search. Often times neither listings nor trustees can tell you the whole story. Sometimes foreclosed homes come with additional liens held against them by tax collectors or utilities companies. A full title search will reveal if any such liens exist. Either consult a titling agency locally or find one online. It only requires a simple phone call, but the results could save you thousands of dollars.
4. Get an independent appraisal. Most listings come with appraisal values, or if not, they are usually provided by the trustee of the sale or the local Sheriff's office, but get one of your own just to make sure. Hire an unaffiliated, independent appraiser to inspect the house and give you an idea of its real market value, just to be sure.
5. If you have doubts, inspect the home yourself. There's really no better way to understand what you're buying than to actually see it. This may seem obvious, but you'd be surprised at how many people try to buy foreclosure homes based on listings alone. Inspecting a home foreclosure can give you an idea of its true condition, as well as allow you to make estimates about any repairs that will need to be done, or any maintenance you'll need to take care of before it's habitable. These costs all factor into your overhead when you buy them home, so be sure to calculate them exactly. If you feel the need, arrange to have a contractor join you and provide an estimate on any repairs.
The more you know about a foreclosure, the better you can calculate how much its true value is after factoring in costs and approximate market values. Remember, there is a lot out there these days, so don't be afraid to search out the best potential values. Follow these steps to make sure you're making a decision to buy based on the best available information, and you'll greatly increase your chances of making a smart investment.
Both Tony Jacowski & John Buguela are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Tony Jacowski has sinced written about articles on various topics from University, Six Sigma and Information Technology. Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solution's Six Sigma Online offers online and certification classes for lean six sigm. Tony Jacowski's top article generates over 90500 views. to your Favourites.
John Buguela has sinced written about articles on various topics from Six Sigma. Aricle by John Buguela from ForeclosureDeals.com Web site. To learn the secrets of buying and finding your dream hous. John Buguela's top article generates over 590 views. to your Favourites.